[00:00:02]
ALL RIGHT. GOOD MORNING EVERYONE.
[1. Opening Items]
THE FIRST AGENDA ITEM IS THE CALL TO ORDER.ON TUESDAY, JULY 23RD, 2024 AND WE HAVE A QUORUM.
ALL OF YOU WILL GET A PREVIEW OF THIS YEAR'S LAR AT TODAY'S MEETING.
LIKE MANY THINGS, THE LAR IS A WORK IN PROGRESS.
IN THE COMING WEEKS, WE'LL CONTINUE [LAUGHTER] WE'LL CONTINUE TO GATHER FEEDBACK FROM INDUSTRY STAKEHOLDERS, OUR ELECTED OFFICIALS AND EXPERTS INSIDE AND OUTSIDE THE AGENCY AS WE FINALIZE THIS YEAR'S REQUEST.
AS ALWAYS, IF YOU HAVE ANY QUESTIONS, COMMENTS OR CONCERNS ABOUT THIS YEAR'S FUNDING REQUEST, FEEL FREE TO REACH OUT TO ANY OF US HERE AT THE COMMISSION OR CONTACT YOUR LOCAL TABC OFFICE.
I'D LIKE TO OPEN IT UP NEXT TO MY FELLOW COMMISSIONERS FOR ANY COMMENTS THEY MAY HAVE THIS MORNING.
ALL RIGHT THEN, WITH THAT, IF YOU'LL PLEASE JOIN ME IN RECITING THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
THE NEXT ITEM IS APPROVAL OF COMMISSION MEETING MINUTES OF MAY 14TH, 2024.
IS THERE A SECOND? WE'VE GOT A SECOND.
APPROVED. I DON'T I'M NOT GETTING A BOOK.
WE DO HAVE IT THE MINUTES ARE APPROVED AS WRITTEN.
[2. Reports]
AUDITORS LIZ MEYERS AND TERRY [INAUDIBLE].OKAY. GOOD MORNING, COMMISSIONERS CHAIRMAN LILY, FOR THE RECORD, MY NAME IS LIZ MEYERS.
I'M WITH MCCONNELL JONES, AND WE SERVE AS YOUR INTERNAL AUDITORS.
YOUR NOTEBOOK SHOULD CONTAIN THE MATERIALS I'LL BE DISCUSSING TODAY.
SO IF WE CAN GO TO THE NEXT SLIDE, PLEASE.
WE'LL START OFF WITH THE FY 24 ANNUAL INTERNAL AUDIT REPORT.
THE REPORT IS REQUIRED BY THE TEXAS INTERNAL AUDITING ACT AND IS SUBMITTED ON YOUR BEHALF.
THE MANDATED CONTENTS IS THE VALIDATION OF THE PUBLIC, OF THE PUBLICATION OF INTERNAL AUDIT REPORTS ON TABC'S WEBSITE, THE STATUS OF THE FY 24 ANNUAL INTERNAL AUDIT PLAN STATUS, AND THE MCCONNELL JONES PEER REVIEW OUTCOME, AS WELL AS THE FY 25 ANNUAL INTERNAL AUDIT PLAN, EXTERNAL AUDIT SERVICES PROCURED IN FY 24, AND TABC'S POLICIES FOR REPORTING SUSPECTED FRAUD AND ABUSE.
[00:05:04]
NEXT SLIDE PLEASE.SO THIS IS THE SAMPLE OF THE REPORT THAT YOU WILL BE LOOKING AT.
NEXT I'LL COVER THE REPORT, THE AUDITS THAT WE CONDUCTED IN THIS FISCAL YEAR.
OKAY. SO FOLLOW UP ON OPEN AUDIT FINDINGS.
SO WHEN IT COMES TO THE FY OPEN AUDIT FINDINGS WHAT WE'RE DOING IS WE REVIEW PAST AUDIT FINDINGS TO DETERMINE IF THEY'VE BEEN FULLY ADDRESSED, PARTIALLY ADDRESSED IN PROGRESS, OR IF THE AGENCY HAS CHOSEN NOT TO ADDRESS THE FINDINGS.
SO IF YOU CAN GO TO THE NEXT SLIDE, PLEASE.
ONE WAS CHOSEN NOT TO BE ADDRESSED.
SO WE APPRECIATE THAT AND BASED ON OUR DISCUSSIONS WITH MANAGEMENT AND EVIDENCE PROVIDED, WE BELIEVE TABC IS MAKING PROGRESS TO ADDRESS THE ISSUES IDENTIFIED IN THE LICENSING AUDIT AS WELL AS THE RISK THE GARTNER RISK REVIEW.
THE FIRST ONE WAS WITH THE PORTS OF ENTRY AUDIT.
THEY HAVE CONDUCTED OR PLACED CAMERAS AT THE DIFFERENT PORTS.
THERE IS JUST 1 OR 2 THAT IS LEFT AND THE ETA FOR COMPLETION IS THE END OF THIS YEAR.
YOU'VE GOT IN PROGRESS AND THEN PARTIALLY ADDRESSED.
THE NEXT ONE WAS RELATED TO THE LICENSING AUDIT.
ACTUALLY THE REST OF THEM ARE.
AND THE FIRST FINDING WAS AIMS UPDATES OR FIXES ARE NOT EFFECTIVELY VETTED BY THE SOFTWARE VENDOR.
AND THIS CAUSES PREVIOUS UPDATES OR FIXES TO BE REVERTED TO THE ORIGINAL PRE-UPDATE STATE.
AND THEY ARE WORKING WITH THE VENDOR NOW.
THE NEXT ONE IS WITH REGARDS TO AIMS SYSTEM UPDATES FIXES THAT WILL CHANGE DATA RELATING TO APPLICATIONS GOING FORWARD, BUT NOT UPDATING INFORMATION PRE-CHANGE, RESULTING IN THE STAFF'S INABILITY TO DETERMINE WHICH APPLICATIONS SHOULD BE PRIORITIZED.
AGAIN, THIS ONE IS PARTIALLY ADDRESSED.
FOR THIS ONE AGAIN, AS THEY FIND THESE ISSUES, THEY'VE BEEN ADDRESSING THEM.
THEY'VE BEEN WORKING WITH AIMS OR DEV TO BIZ TO MAKE SURE THAT THIS IS GETTING BETTER.
BUT IT'S GOING TO BE A PROCESS.
IT'S NOT. IT'S A SHORT IT'S A LONG TERM PROCESS TO CORRECT DATA.
BUT IT IS BEING WORKED ON AND PARTIALLY ADDRESSED.
ERRORS AND WARNINGS RELATED TO POTENTIAL LEGISLATIVE AND REGULATORY VIOLATIONS DO NOT ACCURATELY DISPLAY WITHIN AIMS, SPECIFICALLY PROHIBITIVE AND TIED HOUSE WARNINGS DO NOT WORK.
SO IT'S POTENTIALLY PARTIALLY ADDRESSED AS WELL.
THE NEXT ONE IS THE BOND PROCESSING FUNCTIONALITY WAS NOT IMPLEMENTED DUE TO COST CONCERNS.
AGAIN, THIS ONE IS THEY'RE WORKING ON IT.
THEY'VE ADDRESSED PARTS OF IT.
BUT AGAIN, IT'S GOING TO BE A A LONG TERM PROCESS TO GET IT ALL IN PLACE.
NUMBER NINE, THERE'S AN INABILITY TO MODIFY OR EDIT LICENSING PERMIT APPLICATIONS.
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THE PROXY FUNCTIONALITY REFLECTS WRONG USERS.AGAIN THEY'RE EVALUATING IT AS THEY FIND GAPS OR MISSING FUNCTIONALITY.
THEY ARE WORKING WITH THE VENDOR TO CORRECT THESE.
NUMBER TEN THE AUDIT TRAIL CAN BE COMPROMISING COMPROMISED DURING APPLICATION PROCESSING.
SO WITH THIS AGAIN AS THEY FIND IT THEY ARE ADDRESSING IT WITH THE VENDOR.
AND IT IS CRITICAL FOR WHEN YOU HAVE ISSUES.
FORM VALIDATION FUNCTION ALLOWS INCOMPLETE AND INACCURATE APPLICATIONS.
THIS IS A SCENARIO WHERE, CUSTOMERS CAN USE FILL OUT FORMS AND SUBMIT IT.
THE FUNCTIONALITY THAT WE WERE STATING HERE, OR THE FINDING WAS TO COME UP WITH A SYSTEM THAT WOULD ACTUALLY HAVE A SINGLE FORM AUTOMATED FORM THAT THEY COULD USE TO FILL OUT AND SUBMIT.
NEXT IS THE INABILITY TO CREATE ACCURATE AND RELIABLE REPORTS AND QUERIES DUE TO INACCURATE DATA.
PARTIALLY ADDRESSED AGAIN AS THEY FIND THE ISSUES THEY'RE ADDRESSING AND CORRECTING THEM.
THE FUNCTION IS IMPLEMENTED, BUT TABC HAS NOT ACTIVATED BECAUSE THE PROCEDURE IS NOT WRITTEN.
NEXT SLIDE. CUSTOMERS CAN MAKE AUTHORIZED UNAUTHORIZED CHANGES.
THIS ONE IS IN PROGRESS, MEANING THAT PARTS OF IT HAVE NOT BEEN COMPLETED IT'S STILL GOING FORWARD.
AND IN THE LAST ONE AIMS PERFORMANCE AND ACCURATE AGING CALCULATIONS.
AS THEY'RE FINDING THESE ISSUES, THEY'RE ADDRESSING THEM AS WELL.
SO IT'S PARTIALLY ADDRESSED I THINK THAT SHOULD BE THE LAST ONE.
SO IN ADDITION TO THE NON-SECURITY FORMS, WE ALSO LAST YEAR DID A SECURITY AUDIT.
AND SO WITH REGARDS TO THAT, THE FOLLOW UP FINDINGS, WE HAD SEVEN THAT WERE FULLY ADDRESSED, ONE THAT IS PARTIALLY ADDRESSED AND ONE THAT WAS CHOSEN NOT TO BE ADDRESSED.
NOW BECAUSE OF THE ISSUES, DUE TO THE NATURE OF THE CONTENTS OF THE REPORT, IT IS DEEMED TO BE TO PRESENT POTENTIAL RISKS RELATED TO PUBLIC SAFETY, SECURITY, OR THE DISCLOSURE OF PRIVATE OR CONFIDENTIAL DATA.
AS SUCH, IT IS A RESTRICTED, CONFIDENTIAL REPORT THAT IS EXEMPT FROM THE REQUIREMENTS OF THE TEXAS PUBLIC INFORMATION ACT UNDER THE PROVISION OF TEXAS GOVERNMENT CODE SECTION 552.139.
SO ANY ADDITIONAL QUESTIONS ON THIS WOULD HAVE TO BE IN CLOSED SESSION.
THE NEXT AUDIT WE'LL COVER IS EXECUTIVE OPERATIONS.
THE OBJECTIVE OF THIS AUDIT WAS TO ASSESS MANAGEMENT'S CONTROLS AND PROCESSES TO ENSURE EXECUTIVES ARE COMMUNICATING EFFECTIVELY, EFFICIENTLY AND HAVE PROCESSES IN PLACE TO ENSURE TO ENGAGE EMPLOYEES TO CREATE A DESIRABLE WORKPLACE THAT FOCUSES ON ITS CORE OBJECTIVE TO PROTECT PUBLIC HEALTH AND SAFETY.
AND THE SCOPE PERIOD FOR THIS AUDIT WAS SEPTEMBER 1ST, 2023 TO MAY 15TH, 2024.
HERE WE WERE FOCUSING ON THE ORGANIZATIONAL STRUCTURE AND STAFFING, ORGANIZATIONAL CULTURE, THE EMPLOYEE SENTIMENT SURVEY, RESPONSE AND ACTION PLANS, POLICY DEVELOPMENT, AND ENFORCEMENT HOTLINE, AND EMPLOYEE ASSISTANCE PROGRAM PROMOTION.
THE INHERENT RISK FOR THIS WAS HIGH AND RESIDUAL RISK LOW.
SO AS A REMINDER, INHERENT RISK IS THE RISK BEFORE ANY CONTROLS ARE IN PLACE.
AND THEN RESIDUAL RISK IS AFTER WE'VE AUDITED THE RISK, HOW DO WE FEEL THINGS ARE GOING OKAY.
WE HAD NO FINDINGS AND NO RECOMMENDATIONS.
SO THIS IS THE HIGHEST THAT WE GIVE SO.
ENFORCEMENT AUDIT IS THE NEXT ON THE LIST.
[00:15:04]
PROCESSES, AS WELL AS INTERNAL INVESTIGATION PROCESSES AND TRACKING PROCEDURES IN PLACE ARE PERFORMING EFFECTIVELY, EFFICIENTLY AND EFFICIENTLY IN COMPLIANCE WITH RELATED POLICIES AND FOCUS ON ITS CORE OBJECTIVE TO PROTECT PUBLIC HEALTH AND SAFETY.AND THE SCOPE PERIOD WAS SEPTEMBER 1ST, 2022 TO AUGUST 31ST, 2024.
HERE THE INHERENT RISK IS HIGH, RESIDUAL RISK LOW.
IN OUR FINDINGS WE HAD ONE HIGH AND THREE LOW RISK ITEMS, AND RECOMMENDATIONS WERE THREE RELATED TO HIGH RISK AND FOUR RELATED TO LOW RISK.
SO ONE RISK COULD HAVE MORE THAN ONE RECOMMENDATION THAT'S WHY YOU SEE THE DIFFERENT NUMBERS THERE.
THE INTERNAL CONTROL RATING FOR ENFORCEMENT IS SOME IMPROVEMENT NEEDED.
A FEW SPECIFIC CONTROL WEAKNESSES WERE NOTED GENERALLY HOWEVER, CONTROLS EVALUATED ARE ADEQUATE, APPROPRIATE, AND EFFECTIVE TO PROVIDE REASONABLE ASSURANCE THAT RISKS ARE BEING MANAGED AND OBJECTIVES SHOULD BE MET.
AND WE FOUND THAT STAFFING SHORTAGES WITHIN THE AGENCY'S ENFORCEMENT FUNCTION HAVE LED TO SEVERAL INTERNAL CONTROL DEFICIENCIES DISPROPORTIONATE ASSIGNMENT LEVELS ACROSS THE REGION. SO SOME REGIONS HAD MORE STAFFING SHORTAGES THAN OTHERS, AND NOT NECESSARILY MEETING THE LVBS PERFORMANCE MEASURES RELATED TO ENFORCEMENT ACTIVITIES. AND THE VOLUME OF ASSIGNMENTS PER FTE IS DISPROPORTIONATE PER REGION, SO CAUSING INDIVIDUALS IN CERTAIN REGIONS TO TAKE ON MORE ASSIGNMENTS THAN OTHERS. SO OUR RECOMMENDATIONS WERE TO CONSIDER NON-MONETARY OPTIONS TO ATTRACT AND RETAIN STAFF AND TABC SHOULD CONSIDER A REDISTRIBUTION OF THE REGIONS BASED ON FTES AND THE AVERAGE NUMBER OF INVESTIGATION INSPECTIONS CONSIDERED ANNUALLY.
HERE WE FOUND TWO POLICIES RELATED TO ASSIGNING COMPLAINTS ARE MISSING A KEY COMPONENT, AND MANAGEMENT DOES NOT HAVE DETECTIVE CONTROLS IN PLACE TO IDENTIFY WHEN COMPLAINT INVESTIGATIONS DO NOT FOLLOW POLICIES.
SO HERE WE HAVE THREE RECOMMENDATIONS.
FIRST IS TO REVISE PROCEDURE 5.1.2 COMPLAINT INTAKE AND PROCESSING AND 5.3 POLL OPERATIONS TO INCLUDE ASSIGNING PRIORITIES TO COMPLAINT INVESTIGATIONS BASED ON RISK, SO THAT TABC ADDRESSES THE MOST SERIOUS COMPLAINTS FIRST, AND THE RESIDUAL RISK ON THIS ONE WAS LOW.
AN EXAMPLE OF A DETECTIVE CONTROL IS CONDUCTING A PERIODIC REVIEW OF CLOSED INVESTIGATIONS TO ENSURE THE PROCESS OUTLINED AND THE POLICIES AND PROCEDURES WERE FOLLOWED, AND FOR THIS ONE, THE RESIDUAL RISK IS HIGH.
OKAY. SO THE LAST AREA WAS PROCESS AND CONTROLS TO ENSURE TOOLS ARE UTILIZED EFFECTIVELY TO IMPROVE CONSISTENT AND EFFICIENCIES OVER OPERATIONS AND INTERNAL INVESTIGATIONS. WE NOTED INSTANCES OF NONCOMPLIANCE WITH COMPLAINT INTAKE AND PROCESSING PROCEDURES.
SO THE RESIDUAL RISK FOR THIS IS HIGH.
THEY HAVE PROCESSES IN PLACE TO ADDRESS THAT.
SO UM THAT'S THE END OF MY REPORT.
IF YOU HAVE ANY QUESTIONS I'M HAPPY TO ANSWER THEM.
COMMISSIONERS, ANY QUESTIONS OR COMMENTS? I WOULD ASK THAT [INAUDIBLE] I THINK IS MOST APPROPRIATE FOR EXECUTIVE SESSION BECAUSE IT MAY DEAL WITH SOME POSSIBLE PUBLIC SAFETY ISSUES IF THAT'S ACCEPTABLE.
ALL RIGHT. I WOULD LIKE TO SAY CONGRATULATIONS ON THE EXECUTIVE AUDIT AND THE SCORE RECEIVED THERE.
I AGREE, I THINK WE SHOULD TAKE A MOMENT.
BECAUSE BEING NEAR AUDITING IS NEAR AND DEAR TO OUR HEARTS OVER HERE.
[00:20:07]
COMMISSIONER MACK AND MYSELF BEING ON THE COMMITTEE.SO BEING ABLE TO AND YOU'RE VERY GRACEFUL HOW YOU WENT THROUGH ALL OF IT.
AND IT'S THIS AND THESE FINDINGS AND EVERYTHING.
IT WAS AN EXTREMELY HEAVY LIFT.
AND I DON'T THINK I'VE EVER BEEN A PART OF AN ORGANIZATION THAT GOT NO FINDING.
SO I THINK WE SHOULD GIVE THE STAFF A ROUND OF APPLAUSE BECAUSE THAT IS HUGE [APPLAUSE].
I JUST DIDN'T I JUST DID NOT WANT THAT TO GO UNNOTICED.
BECAUSE Y'ALL DESERVE A LOT OF ACCOLADES FOR THAT.
AND WE KNOW AIMS IS A WORK IN PROGRESS, AND WE'LL CONTINUE TO DO THAT.
AND AS WE CONTINUE THE TRANSPARENCY ON THAT WE JUST FEEL LIKE WE'RE WE'RE IN A REALLY GOOD SPOT.
SO SO THANK YOU TO MCCONNELL JONES.
THANK YOU TO THE TABC STAFF FOR WORKING SO, SO WELL TOGETHER.
COMMISSIONER. THANK YOU. WE'VE GOT A GREAT TEAM.
THE NEXT AGENDA ITEM WILL BE ENFORCEMENT AUDIT FINDINGS AND RESPONSE.
CHIEF SWENSON AND DEPUTY CHIEF OF ADMINISTRATION LANGLEY.
GOOD MORNING, COMMISSIONERS CHAIRMAN.
SHE'S GOING TO DO THE MAJORITY OF THE PRESENTATION TODAY.
SO WE'RE GOING TO KICK OFF ON THE HEELS OF THAT AUDIT.
SO OBJECTIVE ONE AND GOVERNANCE ALL ABOUT PROCESSES AND CONTROLS IN PLACE TO ENSURE ORGANIZATIONAL STRUCTURE, STAFFING NEEDS AND ADEQUATE POLICIES AND PROCEDURES ARE IN PLACE. SO RECOMMENDATION ONE WAS CONSIDER NON-MONETARY OPTIONS TO ATTRACT AND RETAIN STAFF.
TABC ENFORCEMENT IS WORKING ON THOSE ENDEAVORS.
WE ALSO ARE WORKING ON PROGRESSIVE POLICIES.
IT'S SURPRISING HOW MANY LAW ENFORCEMENT OFFICERS WANT THE OPTION OF TATTOOS AND BEARDS? RIGHT. SO TO TRY TO BE PROGRESSIVE, WE'RE WORKING ON THAT WITHIN CONFINES OF POLICY AND WHAT'S BEST FOR SAFETY.
ALSO DEVELOPMENTAL OPPORTUNITIES FOR STAFF AND FOR GROWTH.
SO NO ACTION IS GOING TO BE TAKEN AT THIS TIME TO REALLOCATE THE REGIONS.
SO WE ARE WAITING ON ANY TYPE OF FUTURE ACTION ON THAT RECOMMENDATION.
NEXT SLIDE PLEASE. SO OBJECTIVE TWO COMPLIANCE AND MONITORING.
THE OVERALL RISK RATING FOR THIS WAS LOW AS WELL.
AND AS AGENCY WE WANT TO MAKE SURE THAT OUR POLICIES ALIGN WITH OUR PRACTICE.
RIGHT. ESPECIALLY WITH SO MANY PEOPLE OUT IN THE FIELD WORKING DILIGENTLY.
SO ONE OF THE RECOMMENDATIONS THAT WAS PROPOSED WAS TO REVISE PROCEDURE 5.12 COMPLIANT INTAKE AND PROCESSING, AS WELL AS 5.3 THE POLICY ON OPERATIONS. SO WE ACKNOWLEDGE THAT THERE ARE SOME OUTDATED FORMS THAT ARE IN THAT COMPLAINT INTAKE PROCESS, AS WELL AS ADDITIONS THAT HAVE BEEN MADE FOR COMPLAINT INTAKE THAT WE NEED TO LOOK AT AS AN AGENCY AS A WHOLE.
SO WE HAVE ONE POLICY ON HOW WE INTAKE THESE COMPLAINTS, RECEIVE THEM AND PROCESS THEM.
SO THOSE REVISIONS ARE UNDERWAY AND WE HOPE TO GET THOSE COMPLETED THIS YEAR EARLY FALL.
THE PRIORITY LOGIC LIST IS ALSO WHAT WE HAVE, AND WE'RE LOOKING AT THAT.
[00:25:02]
WE DON'T THINK THERE'S GOING TO BE MANY CHANGES, IF ANY, BUT WE HAVE A PRIORITY LIST THAT HELPS US PRIORITIZE IN ALIGNMENT WITH THE CODE, OUR HIGH RISK LOCATIONS.AND WHEN WE GET THESE COMPLAINTS, WE TRIAGE THE TOP SIX.
NO, THAT IS OUR TOP PRIORITY AS A PUBLIC SAFETY FOCUS.
AND SO WE'RE GOING TO PRIORITIZE THAT AND WE'RE GOING TO MOVE URGENTLY TO ADDRESS THAT.
WHEREAS YOU KNOW ALL OF THESE TYPE SIX ARE ARE THE TOP PRIORITY THAT WE HAVE OUR TOP SIX VIOLATIONS.
THEN IF THERE'S NO VIOLATIONS, THEN THEY MOVE DOWN THE PRIORITY LOGIC LIST AND THEN THEY GET WORKED AND WE VISIT THEM FEWER AND FEWER TIMES AND THEY FALL OFF THE LIST IF THERE'S COMPLIANCE THERE.
IT'S SIGNED AND DOCUMENTED THAT THEY HAVE REVIEWED AND READ THOSE POLICIES, BUT WE ACKNOWLEDGE THAT IT'S GREAT TO HAVE IN-PERSON TRAINING, RIGHT, TO HAVE QUESTIONS AND ANSWERS AND FOCUS ON THOSE PIVOTAL POLICIES.
SO WE'RE ALSO GOING TO BE WORKING WITH THE TRAINING DIVISION ONCE THE COMPLAINT POLICY IS UPDATED, TO ROLL THAT OUT TO OUR STAFF SO THAT WE CAN HAVE SOMETHING EITHER VIRTUALLY OR IN PERSON, THAT WILL BE COMING HOPEFULLY THE FALL OF THIS YEAR.
WE WILL ALSO WORK WITH ITD TO SEE IF THERE'S ANY ADDITIONAL RATE, BECAUSE IT WOULD BE FANTASTIC IF OUR AIMS DATABASE WOULD ALLOW US TO PROMPT A SUPERVISOR FOR A SECONDARY REVIEW VERSUS HAVING THE PERSONNEL MANUALLY HAVE TO GO BACK AND DO THAT.
SO THAT'S SOMETHING THAT WE'LL CONTINUE TO WORK ON THE HORIZON AND SEE IF WE CAN IMPROVE.
SO I'M VERY PROUD OF OUR ENFORCEMENT FOLKS BECAUSE I VIEW OBJECTIVE ONE AND TWO AS BEING ABOUT PROCESSES AND PEOPLE AND HOW THEY'RE ALIGNING WITH THOSE PROCESSES. AND OVERALL, OUR RISK RATING WAS LOW FOR BOTH OBJECTIVE ONE AND TWO.
SO I THINK THAT IS OUTSTANDING.
WHEN IT COMES TO OBJECTIVE THREE OPERATIONS AND TECHNOLOGY.
MANY TIMES THAT'S BEYOND OUR CONTROL.
AND IT WAS A RISK RATING THAT WAS HIGH.
WHAT WE FOUND OUT THROUGH THE REVIEW OF THIS AUDIT IS THAT MANY OF OUR STAFF WERE NOT AWARE OF, OR HAD EASY ACCESS TO THE TRAINING VIDEOS ALREADY CREATED IN AIMS. SO WE TURNED AROUND AND WE REDUCED THE FOLDERS THAT THEY HAD TO GET TO SO IT WOULD BE EASIER TO ACCESS.
WE ALSO WANT TO DO A USER MANUAL, ONCE AIMS TESTERS FEEL LIKE WE HAVE IT WHERE WE NEED IT TO BE.
WE WANT TO DO AN ACTUAL USER MANUAL THAT OUR FOLKS CAN RELY ON AND REFERENCE.
CONTINUE TO ADDRESS AIMS DEFICIENCIES, AND FUNCTIONALITY AS THESE ARE REPORTED BY STAFF.
AGAIN, THAT'S AN ONGOING PROCESS.
SO I APPRECIATE THE OPPORTUNITY TO SPEAK AND IF THERE'S ANY QUESTIONS, WE'RE HAPPY TO DISCUSS THOSE.
THEY'RE A GOOD GROUP. IT WAS ACTUALLY A PROCESS THAT I ENJOYED AS A NEW CHIEF, GOING THROUGH SOME OF THESE, SOME OF THESE THINGS WE HAD SELF RECOGNIZED AND SOME OF THE IDEAS THAT THEY BROUGHT TO THE TABLE WERE VERY BENEFICIAL.
SO THANK YOU TO LIZ AND HER STAFF.
I THINK THAT'S THE FIRST TIME I'VE HEARD FUN AND AUDIT.
[LAUGHTER] I SAID IT WAS NOT A FUN PROCESS, RIGHT? ANY OTHER QUESTIONS OR COMMENTS? OKAY. THANK YOU VERY MUCH.
I'M GOING TO ASK IF LIZ CAN COME BACK UP.
THE NEXT AGENDA ITEM BEING THE FY 25 INTERNAL AUDIT PLAN AND RISK ASSESSMENT.
OKAY. THE COVERING THE PROPOSED FY 2025 INTERNAL AUDIT PLAN.
[00:30:05]
WE WON'T BE DOING FY 26 SINCE OUR CONTRACT NOW ONLY RENEWS ANNUALLY.SO WITH THAT, IF YOU'LL GO TO THE NEXT SLIDE, PLEASE.
SO WHAT WE [INAUDIBLE] WORKING WITH EXECUTIVES AND DOING A RISK BASED RISK ASSESSMENT.
WE CAME UP WITH THE FOLLOWING AREAS FOR THE FY 2025 PLAN.
FIRST, WOULD WE PLAN TO COMPLETE A CYBERSECURITY AUDIT.
THIS WILL COVER SYSTEM CONFIGURATIONS REGULATORY COMPLIANCE, AS WELL AS POLICIES AND PROCEDURES.
IN ADDITION TO THIS AUDIT, WE WOULD CONDUCT AN IT OR PENETRATION TEST OR PEN TEST.
AND A PENETRATION TEST IS A SIMULATED CYBERATTACK ON A COMPUTER SYSTEM TO EVALUATE ITS SECURITY.
AND THESE ARE AUTOMATED [INAUDIBLE] EXCUSE ME.
PENETRATION TESTING PROVIDES ALL OF THE BENEFITS OF A VULNERABILITY SCAN PLUS, IT PROVIDES INSIGHTS INTO WHAT COULD HAPPEN WHEN AN ATTACKER OR A HACKER TAKES ADVANTAGE OF AN APPLICATION'S WEAKNESSES.
OKAY. BEST PRACTICE IS TO PERFORM A PENETRATION TEST 1 TO 2 TIMES PER YEAR.
AS ALWAYS, WE WILL CONDUCT A FOLLOW UP AUDIT ON OPEN AUDIT FINDINGS AND OTHER REQUIRED ACTIVITIES.
I'M HAPPY TO ADDRESS ANY QUESTIONS YOU HAVE ON THIS PLAN.
ANY QUESTIONS? OKAY. THIS DOES REQUIRE A VOTE.
THERE'S NO ADDITIONAL QUESTIONS OR COMMENTS.
AND I MOVE TO APPROVE THE FY 25 INTERNAL AUDIT PLAN AS RECOMMENDED BY STAFF.
IS THERE A SECOND TO THIS MOTION? THANK YOU, COMMISSIONER MARINO.
I HAVE A SECOND. WE WILL NOW VOTE.
NEXT AGENDA ITEM WILL BE INTERNAL AUDIT CHARTER.
SO THIS IS AN ACTION REQUIRED AS WELL.
SO THE PURPOSE OF AN INTERNAL AUDIT CHARTER IS TO FORMALLY DOCUMENT INTERNAL AUDITS PURPOSE WITHIN THE AGENCY OUR AUTHORITY RESPONSIBILITY AND POSITION WITHIN THE ORGANIZATION.
THE CHARTER OBJECTIVE IS TO PROVIDE TABC A BLUEPRINT OF HOW INTERNAL AUDIT WILL OPERATE AND HELPS THE COMMISSION AFFIRM THE VALUE IT PLACES ON INTERNAL AUDITS INDEPENDENCE TO PROVIDE OBJECTIVE ASSURANCE AND CONSULTING SERVICES, TO ADD VALUE AND IMPROVE TABCS OPERATIONS AND SYSTEMS OF INTERNAL CONTROL.
AND THIS CHARTER SHOULD BE REVIEWED ANNUALLY BY THE COMMISSION.
AND THAT IS IT SHOULD BE THE END OF MY REPORT.
ANY QUESTIONS OR COMMENTS? OKAY, I MOVE TO APPROVE THE INTERNAL AUDIT CHARTER AS RECOMMENDED BY STAFF.
IS THERE A SECOND? SECOND. THANK YOU.
OUR VOTES HAVE BEEN RECORDED AND THE MOTION IS APPROVED.
THANK YOU VERY MUCH. THANK YOU.
THE NEXT ITEM ON THE AGENDA WILL BE THE INTERNAL AUDITOR CONTRACT COUNCIL FOR AGENCY AFFAIRS.
GOOD MORNING. MY NAME IS LARRY JOSEPH JAMES I AM THE COUNSEL FOR AGENCY AFFAIRS.
I'M HERE TO ASK THE COMMISSIONERS TO APPROVE AN AMENDMENT TO OUR CONTRACT WITH MCCONNELL JONES, WHICH WILL EXTEND THE CONTRACT FOR AN ADDITIONAL YEAR AND ADD FUNDS TO SUPPORT THE AUDIT PLAN THAT YOU JUST APPROVED.
SO I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
ANY QUESTIONS? OKAY, THEN I MOVE TO APPROVE THE AMENDMENT TO THE INTERNAL AUDITOR CONTRACT AS RECOMMENDED BY STAFF.
[00:35:04]
IS THERE A SECOND? SECOND. SECOND.MOVING ON. THE NEXT AGENDA ITEM WILL BE OUR AIMS UPDATE DEPUTY DIRECTOR SANCHEZ, WELCOME.
COMMISSIONERS, MY NAME IS LAURI SANCHEZ.
I'M THE DEPUTY DIRECTOR OF ITD, AND I'LL BE PRESENTING YOUR AIMS UPDATE.
AND SINCE THAT TIME, THERE HAVE BEEN APPROXIMATELY 42,000 ORIGINAL APPLICATIONS SUBMITTED, 83,000 RENEWAL APPLICATIONS, 76,000 PRODUCT REGISTRATIONS, AND 26,000 ACCOUNT BUSINESS TRANSACTIONS.
AND AS A REMINDER, ACCOUNT BUSINESS TRANSACTIONS ARE THINGS LIKE CHANGE OF TRADE NAME, CHANGE OF LOCATION AND OTHER SELF SERVICE FUNCTIONS AND TO CONTINUE TO SHOW THE USE OF AIMS THERE'S BEEN APPROXIMATELY 2.2 MILLION USER LOGINS INTO THE PRODUCT.
SO WE CONTINUE TO WORK ON PHASE TWO SCOPE.
AND SINCE THE LAST UPDATE, THERE HAS NOT BEEN ANY NEW FUNCTIONALITY IMPLEMENTED.
BUT WE DO HAVE A COUPLE THINGS IN PROGRESS.
SO FOR EACH CHALLENGE OR REALIZED RISK, WE ARE FOCUSING ON THE HIGH IMPACT AND HIGH PROBABILITY ITEMS, WHICH ALLOWS AIMS TO CONTINUOUSLY BE DEVELOPED WHILE EVALUATING RISK, THE IMPACT TO STAFF AND INDUSTRY, AND CONSIDERING OUR BUDGET LIMITATIONS.
SO WE'VE TAKEN SOME ACTIONS TO ADDRESS THESE CHALLENGES.
THE EXECUTIVE STAFF HAS BEEN MEETING WITH THE VENDOR TO DISCUSS THE CHALLENGES THAT WE'RE FACING AND THE VENDORS WORKING TO REVISE THEIR QUALITY ASSURANCE PLAN, AND THAT PROVIDES US SOME TRANSPARENCY.
AND THIS WILL ALSO BE IN THE CONTRACT AMENDMENT FOR PHASE THREE.
ONE OF THE LAST THINGS WE'RE WORKING ON IS TO REVISE THE REQUIREMENTS AND DESIGN PROCESSES.
SO WE'RE WORKING TO COMPLETE PHASE TWO SCOPE.
AND THE COUNCIL HAS PRIORITIZED AND CONTINUES TO PRIORITIZE AIMS PHASE THREE SCOPE.
THIS WILL PROVIDE A CLEAR UNDERSTANDING AND EXPECTATION WITH OUR VENDOR.
SO WE'RE ALSO WORKING TO REVISE THE COMMUNICATION PLAN.
AND WE'RE WORKING TO IDENTIFY FUNCTIONALITY ENHANCEMENTS.
IDENTIFY WHO'S ON THE COUNCIL.
SORRY, I'M DRAWING A BLANK ALL OF A SUDDEN, THE EXECUTIVE DIRECTOR, THE DEPUTY, EXECUTIVE DIRECTOR, THE CFO, THE CIO, GENERAL COUNSEL, AND THEN WE HAVE VARIOUS SUPPORT STAFF INTERNALLY ON THE COUNCIL, AS WELL AS THE CHIEF OF REGULATORY AFFAIRS AND CHIEF OF ENFORCEMENT.
OH, CAN YOU GO BACK ONE SLIDE, JOE? WE HAVE ALSO, JUST AS A REMINDER, WE HAVE CONTRACTED WITH A THIRD PARTY TO PERFORM INDEPENDENT VERIFICATION AND VALIDATION OR IVV SERVICES, AND THEY PROVIDE A THIRD PARTY, IMPARTIAL ASSESSMENT OF THE PROCESS AND THE PRODUCT USING INDUSTRY BEST STANDARDS.
[00:40:06]
THEY ALSO DETERMINE IF THE PRODUCT FULFILLS THE REQUIREMENTS FOR [INAUDIBLE] SOFTWARE DEVELOPMENT LIFE CYCLE PHASE, AND THEY DETERMINE IF WE'VE RECEIVED WHAT'S BEEN AGREED UPON. SO FROM PHASE THREE SCOPE, WE HAVE IMPLEMENTED AN ENHANCEMENT FOR COMPLIANCE REPORTING, WHICH ALLOWS TEN ADDITIONAL LICENSE AND PERMITS SUBORDINATE COMBINATIONS TO SUBMIT AND COMPLETE COMPLIANCE REPORTS.AND WE'RE CURRENTLY WORKING ON PAYMENT PROCESSING MODULE.
AND THE ENHANCEMENT TO THE PAYMENT PROCESSING MODULE WILL AUTOMATE A MANUAL PAPER CHECK PROCESS OF MONEY MATCHING, AS WELL AS AUTOMATING A MODIFICATIONS TO THE CREDIT ENTRY FUNCTIONALITY.
AND SO THAT'S TO BE ABLE TO MODIFY AND EDIT DATA THAT WE'RE ENTERING FOR CREDIT ENTRIES.
SO THE FOLLOWING PHASE THREE ITEMS ARE PLANNED TO BE IMPLEMENTED THIS BIENNIUM.
THERE ARE THREE ITEMS THAT DIRECTLY IMPACT INDUSTRY, AND THOSE ITEMS ARE THE CASH CREDIT LAW FUNCTIONALITY, WHICH ALLOWS DISTRIBUTORS AND WHOLESALERS TO REPORT CASH CREDIT LAW VIOLATIONS ON RETAIL LICENSEES.
AND THEN WE HAVE THE CITY COUNTY DATA UPDATE.
AND SO THOSE ITEMS LISTED ARE THE AUDIT CASE WORKSHEET INTEGRATION, EXCISE TAX RECONCILIATION, ANOMALY DETECTION, AUTOMATED REFUND WORKFLOW, BOND GROUPING, MANAGEMENT, RECORD RETENTION, AUTOMATED MANAGEMENT REVIEW, AND CASE MANAGEMENT REFINEMENT.
THIS CONCLUDES MY PRESENTATION TODAY AND I'M HAPPY TO ANSWER ANY QUESTIONS.
I WOULD LIKE TO MAKE A COMMENT.
AGAIN THE AIMS, IT'S A CUSTOM PROGRAM.
THERE'S NOTHING THAT HAS EVER BEEN DONE LIKE THIS BEFORE WHERE WE'RE CREATING THIS AS WE GO.
AND SO THERE ARE INHERENT CHALLENGES THAT COME WITH THAT.
I KNOW FROM A STAFF PERSPECTIVE, INTERNALLY THERE ARE CHALLENGES, BUT WE'RE WORKING THROUGH THESE BECAUSE AGAIN, A LOT OF THIS YOU MAY NOT HAVE BEEN ABLE TO PREDICT AHEAD OF TIME, BUT YOU'VE GOT TO ADDRESS IT AS AS WE GO THROUGH.
SO I WANT TO RECOGNIZE THAT WE HAVE HAD A TREMENDOUS IMPROVEMENT IN OUR VENDOR MANAGEMENT AND COMMUNICATION.
AND THAT'S BEEN, I THINK, THE KEY TO THIS SUCCESS AND WILL BE THE KEY TO OUR SUCCESS MOVING FORWARD.
SO YEAH, LET'S JUST MAKE SURE WE CONTINUE THAT THE REST OF IT WILL WORK THROUGH.
SO THANK YOU. APPRECIATE THAT.
AND THE NEXT AGENDA ITEM WILL BE OUR LAR BRIEFING CFO SWAN.
CONRAD SWAN CHIEF FINANCIAL OFFICER FOR THE RECORD.
SO, YEAH, I'M HERE TO PRESENT YOU A STATUS UPDATE OF OUR 26-27 LAR.
BUT BEFORE WE JUMP TOO FAR IN, I JUST WANTED TO SORT OF TELL YOU WHERE WE STAND TODAY.
SO WE DON'T YET HAVE A BASE APPROVAL.
WE DON'T HAVE LAR INSTRUCTIONS.
WE DON'T HAVE A POLICY LETTER.
WE'RE MOVING AHEAD WE'RE WORKING THE LAR NOW.
BUT WE HAVE TO DO THAT WITH SOME ASSUMPTIONS.
WE'RE NOT, YOU KNOW, REVENUE ECONOMISTS OR ANYTHING LIKE THAT.
SO WE'RE NOT ANTICIPATING ANY BASE REDUCTIONS.
WE'RE GOING TO ASSUME THAT WE WILL RECEIVE THE FULL BASE THAT WE'VE HAD IN 24 AND 25.
SO OUR APPROPRIATIONS FOR THESE TWO YEARS, FISCAL YEARS OF OUR CURRENT BIENNIUM, WE ASSUME WE'LL GET FOR 26 AND 27, BUT WE HAVE TO REMOVE ANYTHING THAT WE RECEIVED THAT WAS ONE TIME IN NATURE. SO WE'RE TALKING THINGS LIKE THE ALMOST $10 MILLION FOR OUR IT TRANSFORMATION.
THINGS LIKE THE $2 MILLION THAT WE RECEIVE FOR OUR VEHICLES, WE'LL BACK THAT OUT.
AND AFTER THAT, THAT'S OUR ASSUMPTION FOR HOW MUCH BASE WE HAVE TO WORK WITH IN 26 AND 27.
[00:45:04]
WE'RE GOING TO ASSUME WE'LL HAVE THAT OPPORTUNITY TO SEEK FUNDING IN EXCESS OF OUR BASE.SO WE'RE GOING TO START BUILDING SOME IDEAS NOW FOR THOSE EXCEPTIONAL ITEMS. AND THEN FINALLY, USUALLY THIS AGENCY'S DUE DATE FOR THE LAR IS MID-AUGUST.
WE'RE GOING TO CONTINUE TO ASSUME THAT THERE'LL BE A COMPRESSED TIMELINE TO SORT OF CATCH UP TO THE TIME THAT THE INSTRUCTIONS ARE TAKING, SO WE STILL THINK WE NEED TO DO THIS BY MID-AUGUST. SO THAT'S THAT'S THE STATUS THOSE ARE THE ASSUMPTIONS.
AND SO NOW WE CAN TALK ABOUT OUR LAR.
SO THIS IS JUST WHAT WE'RE STARTING TO BUILD JUST AT A GLANCE HERE.
YOU SEE THE WORDS DRAFT THERE.
SO AGAIN WE DON'T HAVE ENOUGH NOW AT THIS POINT TO REALLY SPEAK DEFINITIVELY TO SOME OF WHAT WE'RE SHOWING YOU, BUT WE'RE ESTIMATING OUR BASE WILL BE AROUND $111.5 MILLION FOR THE BIENNIUM, FOR 620 FTES.
SO THE EXCEPTIONAL ITEMS, IF WE DO GET THAT OPPORTUNITY RIGHT NOW, WE'RE ESTIMATING TO HAVE AROUND FIVE EXCEPTIONAL ITEMS. THEY'LL TOTAL TO ABOUT $12.3 MILLION AND THEY'LL SEEK NINE FTES.
COMMISSIONER ADKINS, DID I SAY THAT THESE ARE DRAFT? I DON'T KNOW IF I SAID THAT YET.
I THINK I DID. THESE ARE DRAFT.
WE WILL CONTINUE TO COLLECT IDEAS ON MAYBE EVEN HOW TO TITLE THESE THINGS.
WE CAN ADD THINGS ON. WE CAN CHANGE NUMBERS.
I'M GOING TO SPEND A LITTLE BIT OF TIME QUITE A BIT ACTUALLY, ON THIS SLIDE, JUST TO SORT OF WALK YOU ALL THROUGH THE CLIFFSNOTES VERSIONS OF WHAT EACH OF THESE EXCEPTIONAL ITEMS ASK ARE.
SO THAT FIRST ONE FOR DATA GOVERNANCE THE 87TH SESSION ENACTED INTO GOVERNMENT CODE, A REQUIREMENT THAT WE HAD TO DESIGNATE A DATA MANAGEMENT OFFICER. YOU MAY HEAR US CALL THAT A DMO FROM THIS POINT FORWARD AND TO SET UP A DATA GOVERNANCE PROGRAM.
I THINK YOU JUST HEARD FROM LAURI OF SOME OF THAT.
WE DID THAT WITH EXISTING FTES.
WE KNOW THAT IT'S REALLY NOT SUSTAINABLE LONG TERM TO HAVE OUR DATA GOVERNANCE AND OUR DMO SORT OF PULLING DOUBLE DUTY, DOING THEIR WORK BEFORE THAT GOVERNMENT CODE WAS ENACTED.
AND NOW DOING THAT WORK, WE'RE SUPPORTING 70,000 PLUS LICENSES AND PERMITS.
WE'RE DOING ALL THAT WE DO WITH DATA FOR OUR PUBLIC SAFETY.
WE HAVE TO DEDICATE RESOURCES FOR IT.
AND SO THAT'S WHAT THIS $2 MILLION IS SEEKING TO DO THAT'S WHAT THE FOUR FTES ARE FOR.
SO WE WILL DESIGNATE A DMO TO THIS EFFORT.
AND THEN THE DMO WILL HAVE A SERIES OF STAFF TO SORT OF ASSIST.
SO THE DMO WILL PROVIDE LEAD AND OPERATIONAL GUIDANCE FOR IT USING THREE STAFF.
THOSE THREE STAFF WOULD BE A DATA SCIENTIST AND TWO DATA ANALYST.
AND THEN FURTHER, JUST SORT OF OUR STAKEHOLDERS BEING [INAUDIBLE] STAKEHOLDERS BEING AVAILABLE, HAVING ACCESS TO THAT DATA SO THAT THEY COMMUNICATE AND INTERACT WITH IT.
AND THAT'S I GUESS WE WOULD CALL THAT SORT OF DATA LITERACY.
IN ADDITION TO THAT DATA LITERACY, WE WANT TO HAVE SOME DATA INTEGRITY.
SO THIS BUSINESS INTELLIGENCE OFFICE, THAT WOULD BE WHAT THE DMO IS OVERSEEING, THAT BUSINESS INTELLIGENCE OFFICE WOULD BE THERE TO OFFER SOME QUALITY CONTROLS FOR OUR DATA.
AND THEN FINALLY, IT'S JUST ABOUT DATA PRODUCTIVITY FROM THIS OFFICE.
RIGHT. AND SO THAT'S WHAT THIS ASK IS ABOUT.
I'VE FOCUSED ON SORT OF THOSE FTES.
BUT A SIGNIFICANT PART OF THAT $1.9 INCLUDES CONTRACTORS.
WE KNOW THAT WE'RE GOING TO HAVE TO IN STANDING THIS UP WITH THE FOCUS THAT WE'RE PUTTING ON IT, WE'RE GOING TO NEED SOME CONTRACT WORKERS TO HELP US STAND THAT UP, AT LEAST INITIALLY, THERE COULD COME A POINT WHERE WE WANT TO ABSORB THOSE CONTRACT WORKERS AS OUR FTES.
SO THAT'S WHY YOU'RE ONLY SEEING FOUR FOR NOW.
[00:50:01]
BUT WE COULD HAVE UP TO THREE ADDITIONAL CONTRACTORS ASSISTING US IN THIS EFFORT.OKAY. THE SECOND ITEM YOU'RE SEEING HIRE AND RETAINING PEACE OFFICERS.
OFTENTIMES IN INTENSE SITUATIONS.
YOU WANT A SEASONED OFFICER TO DO THAT.
AND WE HAVE SOME PRETTY COMPLICATED CRIMES THAT THEY'RE INVESTIGATING.
SO YOU LOOK TO SEASONED OFFICERS FOR THAT.
BUT WE'RE LOCKED IN TO WHAT SCHEDULE C ALLOWS US TO PAY FOR THAT EXPERIENCE.
AND AT THIS TIME WE HAVE TO HIRE THOSE SEASONED OFFICERS, THOSE EXPERIENCED OFFICERS, AS A PROBATIONARY AGENT, MAKING ABOUT $55,000. THAT'S AN IMPEDIMENT TO SORT OF OUR RECRUITMENT EFFORT.
WHEN THE OFFICER FROM, SAY, HOUSTON, FOR EXAMPLE, IS RETIRING WITH ALL OF THAT EXPERIENCE AND APPLIES HERE AND LEARNS THAT WE'RE GOING TO HIRE THEM AT $55,000, IT MAKES OUR JOB DIFFICULT TO FINISH THAT OUT.
AND SO WHAT THIS EXCEPTIONAL ITEM IS SEEKING TO DO IS IT'S SEEKING TO USE FOUR YEARS OF PRIOR EXPERIENCE, WHETHER THAT'S IN THIS STATE OR ANYWHERE IN THE US, AND ASSIGNING THE SALARY THAT SCHEDULE C SAYS THIS AGENCY HAS TO WORK WITH.
AND WE BELIEVE THAT THAT'S REALLY GOING TO HAVE A BIG IMPACT ON OUR ABILITY TO RECRUIT.
BUT THIS EXCEPTIONAL ASK DOESN'T STOP THERE.
WE HAVE EXISTING STAFF THAT WERE HIRED SORT OF UNDER THAT OLD WELL, THE CURRENT MODEL, IF WE'RE SUCCESSFUL, WE WANT THIS APPROPRIATION REQUEST TO ALLOW US TO ALSO CREDIT OUR EXISTING AGENTS FOR FOUR YEARS.
AND SO THAT'S WHAT YOU'RE LOOKING AT WITH $2.5 MILLION IN EACH YEAR FOR $5 MILLION, IT'S SORT OF EXECUTING ON THAT STRATEGY, AND I'M GOING TO PUT A PLACEHOLDER ON A CONVERSATION THAT WE'LL HAVE ABOUT THAT STRATEGY, WHICH IS WE ALSO HAVE TO GO HAND IN HAND WITH THIS EXCEPTIONAL TASK OF CREATING A WRITER THAT GIVES US THE AUTHORITY TO DO THE ASSIGNMENTS THAT WE'RE LOOKING FOR, CREDITING THOSE YEARS OF SERVICE.
SO WE'LL TALK ABOUT THAT IN A SUBSEQUENT SLIDE HERE IN A MOMENT.
THE THIRD ITEM, AND I MEANT TO TELL YOU, ALL THESE ARE IN NO PARTICULAR ORDER.
THESE AREN'T A PRIORITY ORDER.
THIS IS JUST A PRESENTATION ORDER.
THIS A DRAFT? AND IT'S A DRAFT.
SO YOUR THIRD ONE IS THIS IS THE FOCUS OF THIS IS ON WHAT SOMETIMES YOU HEAR YOUR BACK OFFICE STAFF.
THIS IS OUR INDIRECT ADMINISTRATIVE GOAL.
THESE ARE THE FOLKS THAT ARE PROVIDING YOUR FISCAL, YOU KNOW, THE FISCAL OPERATIONS, YOUR HUMAN RESOURCES, YOUR TECHNOLOGY RESOURCES, YOUR SECURITY, YOUR PROGRAM IMPLEMENTATION MANAGEMENT.
WHAT WE ARE SEEING IS THAT THEY'RE FACING SIGNIFICANT AND ENDURING LABOR MARKET PRESSURES, AND WE'RE SEEING THE EVIDENCE OF THAT WHEN WE LOOK AT THINGS LIKE AVERAGE SALARY AT OTHER AGENCIES AND THEY'RE NOT LEAVING FOR THE AVERAGE, THEY'RE NOT LEAVING FOR LOWER PAY.
SO WHEN YOU LOOK AT JUST THE AVERAGE IN THOSE MAX SALARIES, WE'RE SEEING THINGS LIKE ACCOUNTANTS THAT ARE GETTING PAID AT OTHER STATE AGENCIES, BETWEEN 8 AND 13% HIGHER THAN WE DO.
THERE'S ALL SORTS OF OTHERS THAT WE'VE TALKED ABOUT HR AND OTHER TYPES OF JOBS.
WE'RE SEEING THOSE STATISTICS.
BUT WE CAN LOOK AT THE DATA IN A DIFFERENT WAY.
WE LOOKED AT A WELL, FIRST LET ME SAY THIS.
WE HAVE ABOUT BETWEEN 60 AND 70 FTES THAT WORK IN THAT INDIRECT GOAL.
WE LOOKED AT A SIX YEAR PERIOD, AND IN THAT SPAN WE SAW 50 FTES THAT TURNED OVER.
RIGHT. THAT'S SHOWING US THE PRESSURE TO RETAIN THEM.
OF THOSE THAT TOOK THE EXIT INTERVIEW, A THIRD SAID THEY WERE GOING TO OTHER STATE AGENCIES.
RIGHT. SO THAT'S WHAT THIS EXCEPTIONAL ITEM IS ABOUT.
IT'S ABOUT IT'S HELPING TABC ADDRESS THAT.
IT'S HELPING US GET AN APPROPRIATED POT OF FUNDING THAT WE CAN THEN STRATEGIZE AND USE TO RETAIN OUR QUALIFIED PROFESSIONALS WHO ARE REALLY CRITICAL TO OUR SUCCESS HERE.
[00:55:03]
AND SO THAT'S WHAT YOUR $1.3 MILLION CRITICAL OPERATION STAFF IS ABOUT.THE FOURTH ITEM THAT YOU'RE SEEING IS ABOUT OUR IT.
YOU'VE KIND OF HEARD THREE NOW THAT ARE ABOUT LEVEL SETTING THE AGENCY.
THIS ONE'S REALLY NO DIFFERENT.
SO WHERE WE'RE STRETCHED THIN IN THAT, IN THAT IT FUNCTION IS SORT OF OUR IMPLEMENTATION OF SOFTWARE INITIATIVES, INTEGRATING THAT INTO OUR OPERATIONS AND THEN REALLY KIND OF DOING SOME WORKFLOW, ADOPTING SOLUTIONS FOR STAFF'S WORKFLOW.
IT WOULD BE TO HIRE A PROJECT MANAGEMENT PROJECT MANAGERS ABOUT THREE.
WE CAN GIVE TWO RESOURCES, TWO PROJECT MANAGEMENT RESOURCES TO HELP SUPPLEMENT THAT.
THE THINGS THAT ARE LESSER SCOPE, LOWER BUDGET, A LITTLE EASIER TO MANAGE.
AND SO WE COULD TAKE THAT APPROACH WITH THREE OF THOSE FIVE FTES.
THE REMAINING TWO FTES WERE FOR THOSE OTHER THINGS THAT I WAS TALKING ABOUT.
IT WOULD BE A NETWORK SPECIALIST.
WE JUST ARE IN A HYBRID ENVIRONMENT WHERE WE JUST NEED TO PUT A GREATER FOCUS ON NETWORK SUPPORT.
AND THEN FINALLY A SYSTEMS ANALYST WHERE WE WERE TALKING ABOUT SORT OF DEVISING SOLUTIONS FOR, YOU KNOW, STAFF AND THEIR WORKFLOW NEEDS, AND THAT'S WHAT THAT WOULD BE DEVOTED TO. AND SO FIVE FTES, $2 MILLION THAT'S WHAT THE EXCEPTIONAL ITEM IS ABOUT ON THAT ONE.
AND FINALLY, OUR AIMS LICENSE AND SUPPORT.
SO THIS ONE, AS WE KNOW WE'VE HAD THREE PHASES NOW WE'RE CURRENTLY IN OUR THIRD PHASE OF AIMS, AS NEW FUNCTIONALITY IN OUR PLATFORM GOES LIVE THAT MEANS WE'RE GOING TO HAVE LICENSE COSTS FOR THE PEOPLE WHO NEED TO ACCESS THAT.
AND OF COURSE, WE'RE GOING TO HAVE TO MAINTAIN THAT.
SO WE'RE GOING TO HAVE MAINTENANCE COSTS.
SO NOW WE HAVE $800,000 PER YEAR GOING TO LICENSE AND SUPPORT COSTS LIKE THAT.
BUT THEY GAVE US MORE AUTHORITY THAN $1.6.
RIGHT. BUT THAT AUTHORITY WASN'T FUNDED WITH BUDGET.
AND SO THAT'S WHAT THIS FIFTH EXCEPTIONAL ITEM IS SEEKING TO DO IS TO GET THAT BUDGET.
AND THIS IS OUR ACKNOWLEDGMENT THAT WE'RE GOING TO NEED $2 MILLION OF ADDITIONAL BUDGET.
IN ADDITION TO THAT $1.6 IN BASE WE JUST TALKED ABOUT TO ENSURE THAT WE'RE ABLE TO HAVE ALL THE LICENSES THAT WE NEED, THAT WE IN MAINTENANCE THAT WE NEED. WITHOUT THIS, WE'RE HAVING TO THINK ABOUT HOW TO TAKE STAFF ACCESS AWAY.
AND THAT'S GOING TO COME AT A CONSEQUENCE OF APPLICATIONS.
FOR EXAMPLE, THEY'LL GET PROCESSED SLOWER.
AND THAT'S WHAT THIS EXCEPTIONAL ASK IS IS THERE FOR.
AND SO THOSE ALL AGAIN TOTAL UP TO $12.3 MILLION NINE FTES ESTIMATED.
AND SO WHEN YOU TAKE OUR BASE WITH THOSE PROJECTS, YOU'LL HAVE $123.7 MILLION THAT WE'RE SEEKING WITH 629 FTES.
ALL RIGHT. I THINK I SPENT QUITE A BIT OF TIME ON THAT.
SO WE'LL WE'LL MOVE FORWARD FINALLY.
SO WE WANTED TO SHOW YOU THOSE REVISIONS.
I PLACED A PLACEHOLDER TO TALK ABOUT SOME OF OUR WRITER REVISIONS.
I THINK THERE'S REALLY FOUR WRITERS HERE THAT I WANTED TO FOCUS ON.
SO WE'RE GOING TO ASK TO REMOVE TWO WRITERS.
WRITER 13 CURRENTLY IS TO LIMIT OUR OUT OF STATE TRAVEL ACTIVITIES.
WE'RE GOING TO SEEK A REPEAL OF THAT.
OUR WRITER 16 WINERY PERMIT STUDY THAT WAS ADDED TO OUR CURRENT BIENNIUM.
SO FOR THE FIRST TIME IN 24 AND 25, WE HAVE THAT WRITER.
WE'RE GOING TO FULFILL THAT STUDY.
SO THERE'S NO NEED, NEED FOR THAT STUDY TO STAY IN OUR AGENCY'S BILL PATTERN IN PERPETUITY.
SO WE'RE JUST GOING TO ASK THAT THAT BE REMOVED NOW THAT WE'RE FULFILLING THAT STUDY.
AND THEN WE'RE GOING TO REQUEST TWO NEW WRITERS.
[01:00:01]
SO THIS WRITER WILL SPELL OUT THE AUTHORITY THAT WE'RE SEEKING.AND IT WILL LOOK SIMILAR TO DPS WHO HAS A WRITER SPECIFYING THAT SAME THING.
BUT OURS WILL BE ABOUT APPLYING FOUR YEARS OF SERVICE CREDIT UP TO FOUR YEARS OF SERVICE CREDIT FOR THOSE THAT HAVE IT WORKING IN THIS STATE OR ANYWHERE IN THE US. AND THEN OUR FINAL WRITER THAT WE'RE ANTICIPATING ADDING IS YOU SPOKE ABOUT IT WHEN DEPUTY CHIEF SANCHEZ WAS UP HERE ABOUT HOW DIFFICULT IT IS TO MANAGE LARGE SCALE, MULTIYEAR IT PROJECTS.
AND SO ONE OF THOSE CHALLENGES IS TIMELINE AND USE OF BUDGET.
SO WHAT WE'RE SEEKING TO DO IN THIS WRITER IS, IS ANY FUNDS THAT HAPPEN TO BE LEFT OVER AT 831 OF 20 OF FISCAL YEAR 25? WE WOULD LIKE THE AUTHORITY TO TAKE THOSE BALANCES FORWARD.
WE CALL THAT UB AUTHORITY UNEXPENDED BALANCES.
WE WANT TO JUST TAKE THAT FORWARD AND HAVE IT FOR USE IN 26 AND 27.
BUT WE'LL NEED A WRITER THAT ALLOWS US TO DO IT.
SO WE'RE GOING TO WE'RE GOING TO DRAFT ONE UP FOR THAT PURPOSE.
AND THAT CONCLUDES MY COMMENTS.
AND I'M HERE TO TAKE ANY QUESTIONS IF YOU HAVE SOME.
COMMISSIONERS ANY COMMENTS OR QUESTIONS? YEAH. I WANTED TO JUST UNDERSCORE THE THE NEED FOR THE ADDITIONAL RESOURCES TO UPGRADE, YOU KNOW, RECRUITING FOR PEACE OFFICERS AND OUR AGENTS.
AND THAT HAS BEEN AN ISSUE THAT WE'VE BEEN STRUGGLING WITH SINCE I CAME ON AS CHAIR.
AND HOPEFULLY THIS YEAR WE CAN FIND SOME RESOLUTION TO ASSIST THAT BECAUSE THE RECRUITING OF PEACE OFFICERS IS NOT SIMPLY A TABC ISSUE.
IT'S IT'S ACTUALLY KIND OF A, IT'S A, IT'S A STATE AND NATIONAL ISSUE.
AND SO THE IDEA THAT WE CAN DO THIS AND FIND A WAY TO ASSIST OUR DEPARTMENT AND OUR AGENCY IN RECRUITING IS ABSOLUTELY ESSENTIAL.
AND I'M I'M GLAD THAT WE ARE GOING TO MAKE THIS A PRIORITY BECAUSE WE YOU KNOW, WE WE HAVE FEWER AGENTS TODAY AT TABC THAN WE DID TEN YEARS AGO.
AND YET OUR INDUSTRY HAS, IN SOME CASES, MORE THAN DOUBLED.
SO THIS IS A REAL ISSUE, AND I'M GRATEFUL THAT WE ARE BRINGING IT TO BEAR IN OUR IN OUR EXCEPTIONAL ITEMS. THANKS.
THANK YOU, CHAIRMAN, AND THANK YOU, CFO SWAN.
NEXT AGENDA ITEM IS PUBLIC COMMENT.
HAS ANYONE SIGNED UP? WE HAVE NONE, SIR.
ALL RIGHT. MOVING ON TO THE PROPOSALS FOR DECISION.
[4. Orders on Proposals for Decision]
OUR NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ORDER ON PROPOSAL FOR DECISION REGARDING TEXAS ALCOHOLIC BEVERAGE COMMISSION VERSUS CORRALES LLC, DBA PALMAS, SOAH DOCKET NUMBER 458-24-05112. SPECIAL COUNSEL DIAMOND.THANK YOU, COMMISSIONER ADKINS.
FOR THE RECORD, MY NAME IS MATT DIAMOND I'M A SPECIAL COUNSEL WITH THE AGENCY.
AS COMMISSIONER MENTIONED, AGENDA ITEM FOUR PERTAINS TO POTENTIAL ACTION ON ORDER RELATED TO PROPOSAL FOR DECISION ON SOAH DOCKET ITEM 458-24-5112. RESPONDENT MATEHUALA CORRALES LLC, DOING BUSINESS AS PALMAS, CURRENTLY HOLDS PERMITS WITH TABC, INCLUDING A WINE AND MALT BEVERAGE RETAILERS PERMIT, A RETAILER LATE HOURS CERTIFICATE, AND A FOOD AND BEVERAGE CERTIFICATE.
AGENCY STAFF WORKING WITH OUR LAW ENFORCEMENT PARTNERS WITH THE HOUSTON POLICE DEPARTMENT ALLEGED THAT ON FOUR SEPARATE OCCASIONS FROM TWO COVERING 15 MONTHS IN 2022 THROUGH 2023, RESPONDENT OR THEIR AGENTS OR EMPLOYEES COMMITTED ONE OR MORE OF THE FOLLOWING VIOLATIONS.
SERVED, SOLD OR DELIVERED ALCOHOLIC BEVERAGES DURING PROHIBITED HOURS.
REFUSED TO PERMIT OR INTERFERED WITH AN INSPECTION OF LICENSED PREMISES BY AN AUTHORIZED TABC AGENT OR PEACE OFFICER, AND POSSESSED OR PERMITTED OTHERS TO POSSESS OUR NARCOTIC ON THE LICENSED PREMISES.
[01:05:01]
DECISION RECOMMENDING THAT RESPONDENTS WINE AND MALT BEVERAGE RETAILERS PERMIT, ALONG WITH THEIR SUBORDINATE CERTIFICATES BE CANCELED.AND THAT CONCLUDES MY PRESENTATION.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
COMMISSIONERS, DO YOU HAVE ANY QUESTIONS OR COMMENTS? OKAY. I MOVE THAT WE ADOPT THE FINDINGS OF FACT AND CONCLUSIONS OF LAW CONTAINED IN THE PROPOSAL FOR DECISION, AND THAT WE AUTHORIZE MYSELF TO SIGN THE ORDER ON BEHALF OF THE COMMISSION. IS THERE A SECOND TO THIS? THANK YOU, COMMISSIONER MARINO.
I HAVE A SECOND. WE WILL NOW VOTE.
OKAY. OUR VOTES HAVE BEEN RECORDED.
THANK YOU VERY MUCH. THANK YOU. GOOD MORNING.
[5. Rules]
THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON THE REVIEW AND ADOPTION OF CHAPTER 33, SUBCHAPTER C TO G, RELATING TO BOND'S APPLICATION, REVIEW AND PROTEST, TEMPORARY EVENTS, LICENSE AND PERMIT ACTION AND EMERGENCY ORDERS, SENIOR COUNSEL CHERRY.GOOD MORNING FOR THE RECORD, MATTHEW CHERRY TABC SENIOR COUNSEL.
FIRST, THE COMMENTER STATED THAT RULE 33.41 WITHIN SUBSECTION E CONTRADICTS ALCOHOLIC BEVERAGE CODE CODE 106.14 PERTAINING TO BOND FORFEITURE FOR RESTRAINED VIOLATIONS. STAFF DISAGREES WITH THE COMMENT, AS SECTION 1111 OF THE CODE SPECIFICALLY STATES THAT RESTRAINED CASES UNDER SECTION 10614 ARE RIPE FOR BOND FORFEITURE. NEXT, THE COMMENTS ARE ALSO STATED THAT RULE 33.54 SHOULD BE AMENDED TO REQUIRE THE AGENCY TO ACT ON A ORIGINAL APPLICATION WITHIN 90 DAYS AND WITHIN 180 DAYS FOR A RENEWAL APPLICATION, AND THEN ALSO STATED THAT THE RULE IMPOSED THE RULE SHOULD IMPOSE A DEADLINES BY WHICH A HEARING ON AN APPLICATION SHOULD BE HELD. THIS IS ACTUALLY THE SAME COMMENT THAT WAS RECEIVED IN A PRIOR RULE PACKAGE, AND STAFF STILL DISAGREES AND WILL ECHO ITS PRIOR RESPONSE THAT SUCH AMENDMENT IS ONE UNNECESSARY. IT'S ALSO CONTRARY TO THE AGENCY'S PUBLIC SAFETY MISSION, AND THEN PARTS OF IT ARE ALSO OUTSIDE OF THE AGENCY'S PURVIEW.
AND THEN LASTLY, THE COMMENTER STATED THAT RULE 33.59 SHOULD BE REPEALED BECAUSE THE COMMENTER SAYS IT CONTRADICTS ALCOHOLIC BEVERAGE CODE SECTION 11.43 BY CLAWING BACK AN APPLICATION FROM AN ALJ.
SO I'M HAPPY TO ANSWER ANY QUESTIONS.
COMMISSIONERS ANY QUESTIONS? OKAY. I MOVE TO APPROVE REVIEW AND RE ADOPTION OF CHAPTER 33, SUBCHAPTER C THROUGH G RELATING TO BONDS, APPLICATION REVIEW AND PROTEST, TEMPORARY EVENTS, LICENSE AND PERMIT ACTION AND EMERGENCY ORDERS AS RECOMMENDED BY STAFF.
IS THERE A SECOND TO THIS MOTION? SECOND. THANK YOU, COMMISSIONER MACK AND LILLY, I HAVE A SECOND.
OUR VOTES HAVE BEEN RECORDED AND MOTION IS APPROVED.
THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF RULE REVIEW OF CHAPTER 45, SUBCHAPTER A THROUGH E RELATING TO MARKETING PRACTICES, GENERAL PROVISIONS, ENFORCEMENT, AND SPECIFIC REQUIREMENTS FOR DISTILLED SPIRITS, MALT BEVERAGES, AND WINE.
STAFF DOES RECOMMEND PUBLISHING THIS RULE REVIEW FOR SUBCHAPTERS A THROUGH E OF CHAPTER 45, AND THE REVIEW STAFF WILL CONSIDER WHETHER REASONS FOR ADOPTING THESE RULES CONTINUE TO EXIST AND DETERMINE WHETHER THE RULES SHOULD BE REPEALED, READOPTED OR RE-ADOPTED WITH AMENDMENTS.
STAFF WILL ALSO CONSIDER WRITTEN COMMENTS RECEIVED BY 5 P.M.
THIS IS THE FINAL ITEM IS NOW RIPE FOR YOUR VOTE ON PUBLICATION.
[01:10:03]
COMMISSIONERS ANY QUESTIONS? OKAY, I MOVE TO APPROVE PUBLICATION OF RULE REVIEW OF CHAPTER 45 SUBCHAPTERS A THROUGH E RELATING TO MARKETING PRACTICES, GENERAL PROVISIONS, ENFORCEMENT, AND SPECIFIC REQUIREMENTS FOR DISTILLED SPIRITS, MALT BEVERAGES, AND WINE.IS THERE A SECOND TO THIS MOTION? SECOND. ALL RIGHT, I HAVE A SECOND.
OUR VOTES HAVE BEEN RECORDED AND MOTION IS APPROVED.
THE NEXT ITEM IS EXECUTIVE SESSION.
[6. Executive Session]
WE ARE GOING TO GO INTO EXECUTIVE SESSION.THE COMMISSION WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE 551.074, 551.071 AND 551.089 AND THE TIME IS 11:44 P.M..
THE DATE IS TUESDAY, JULY 23RD, 2024, AND THE TIME IS 11:54 A.M..
NEXT IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION AND NO ACTION WILL BE TAKEN.
NEXT IS THE ANNOUNCEMENT OF THE NEXT MEETING DATE.
[7. Closing Items]
THE NEXT SCHEDULED COMMISSION MEETING DATE IS PLANNED FOR TUESDAY, SEPTEMBER 24TH, 2024.COMMISSIONERS, IS EVERYONE OKAY WITH THIS? YES. YES.
THE COMMISSION IS SCHEDULED TO MEET ON TUESDAY, SEPTEMBER 24TH, 2024.
THE TIME IS NOW 11:55 AND WE ARE ADJOURNED.
THANK YOU, THANK YOU, THANK YOU, THANK YOU.
COMMISSIONER ADKINS, THANK YOU VERY MUCH FOR PRESIDING.
ABSOLUTELY. ENJOY YOUR TRIP.
* This transcript was compiled from uncorrected Closed Captioning.